Connecticut's BioScience Cluster Gains Momentum, Report Shows

Connecticut-based bioscience research and development (R&D) investment in 2001 totaled $3.6 billion, an 18 percent increase over 2000, according to the Seventh Annual Economic Report of Connecticut United for Research Excellence (CURE), Connecticut's bioscience Cluster.



2001 Gains and Future Opportunities, released last week at Yale University, highlights several economic indicators that demonstrate the growth of the bioscience industry in Connecticut, including:

• Connecticut's bioscience cluster total R&D investments increased 139 percent to $3.6 billion between 1995 and 2001. The most significant growth, 437 percent to $277 million, was noted in the biotechnology sector.
• Companies reporting from the biotechnology sector raised nearly $557 million in private and public capital last year despite a difficult financial environment nationally.
• Connecticut-based pharmaceutical R&D companies now account for more than 12 percent of all R&D dollars spent by the nation's pharmaceutical companies.
• Total cluster employment in 2001 increased 3 percent to nearly 16,500 persons, creating an additional 471 jobs over the previous year. The average R&D annual salary for bioscience employees held steady at approximately $63,000.
• Occupied laboratory space within the cluster grew during 2001 by nearly 400,000 square feet (8 percent) to a total of 5.6 million square feet. The biotechnology sector noted the largest increase at 18 percent, adding nearly 90,000 square feet for a 2001 total occupied lab space of 589,000 square feet.
• Clinical studies investments increased 22 percent during 2001 to nearly $512 million from $418 million in 2000. The most significant growth (55 percent to more than $41 million from $26.7 million) occurred in the biotechnology sector.

For the first time, data were collected regarding clinical milestones in the biotechnology sector. Reporting companies noted work on 25 Phase I, II and III clinical trials, a 57 percent increase from 2000. Seven new investigational new drug applications were filed in 2001 as compared to two in the previous year.



Biotechnology companies exchanged unused R&D tax credits to the State of Connecticut for 65 percent of their face value during the years 2000 and 2001, for a total reimbursement of $10.5 million and $6.3 million, respectively. The exchange represents a source of capital available to biotechnology companies in Connecticut.



Copies of 2001 Gains and Future Opportunities may be requested from CURE by contacting Marcia Valente at (860) 529-3120. A detailed press release, which includes several useful tables, is available at the website.